American Airlines parent AMR expected to post narrow 2Q loss

Ahead of the Bell: AMR expected to report 2Q loss

FORT WORTH, Texas — Delta and United turned in their best quarter in years, but analysts aren’t expecting similar fireworks when American Airlines parent AMR Corp. releases second-quarter results Wednesday.

Analysts were expecting the nation’s second-biggest airline to report a thin loss — 2 cents per share — while forecasting profits at the other four so-called legacy airlines: Delta, United, Continental and US Airways.

Investors were waiting to see what American said about traffic, especially among business travelers who cut back sharply during the recession.

On Monday, Delta Air Lines Inc., the world’s biggest airline, reported its largest quarterly profit in a decade Monday — $467 million — although the shares fell on disappointing revenue.

The next day, United parent UAL Corp. said it earned $273 million in the quarter as business travelers returned and the company put a lid on costs. It was UAL’s best second quarter since 1999.

American, like most of its rivals, has been trying to bring in more money with extra fees for things such as checking bags. Delta, United and Continental have boosted per-seat revenue with the fees, even though many travelers don’t like them.

Analysts criticized American’s management three months ago, saying executives seemed to lack a coherent strategy for recovering from the recession. American executives said they’ll get a bounce from closer ties to British Airways on trans-Atlantic routes and Japan Airlines on service to Asia.

American scored a victory on Tuesday when U.S. regulators granted antitrust immunity for a business venture between American, British Airways and other airlines, which will let them work more closely on setting prices and schedules across the Atlantic.

AMR shares rallied in late 2009 and early 2010, but have stumbled lately, dropping 35 percent since early March.